Import Declaration Fee (IDF): Proposed Changes Dropped

What Has Changed?

The Finance Bill, 2026 proposed changes to how Import Declaration Fee (IDF) collections are allocated. However, these proposed changes were dropped in the Finance Act, 2026.

What Was Proposed?

The Bill sought to:

• Reduce the allocation of IDF collections paid into the Fund established under the Public Finance Management Act from 20% to 10%;
• Remove the express allocation of 10% of the Fund's monies for revenue-enforcement initiatives; and
• Retain the allocation of 10% of the Fund's monies towards Kenya's contributions to the African Union and other international organisations to which Kenya has financial obligations.

What Does This Mean?

The proposed changes did not become law. The existing framework for allocating these funds remains in place.

This maintains the current funding structure for revenue-enforcement initiatives and Kenya's international financial obligations.